The 1973 Oil Price Shock Was an Example of Cost-Push

question 162

True/False

The 1973 oil price shock was an example of cost-push inflation.

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Definitions:

Consumer Surplus

A rephrased definition: The economic benefit that consumers receive when they can purchase a product for less than the maximum price they are willing to pay.

Consumer Surplus

The gap between the overall sum consumers are ready and able to spend on a product or service and what they really spend.

Cognitive Dissonance

A psychological discomfort experienced when simultaneously holding two or more conflicting beliefs, ideas, or values.

Self-Serving Bias

A common cognitive bias where individuals attribute their successes to internal factors while blaming external factors for their failures.